Govt will not be bullied to pay for unfinished projects – Public Works Ministry

…to penalise Leguan Stelling contractor

With works on the Leguan Stelling continuing to stall, the Ministry of Public Works has read the riot act to the contractor, saying that it will institute penalties against them for not fulfilling their contractual obligations despite efforts to meet their demands.
Upgrades to the Leguan Stelling should have been completed since 2019, under the former A Partnership for National Unity/Alliance For Change (APNU/AFC). Instead, however, the project was inherited by the People’s Progressive Party/Civic (PPP/C) Government.
Troubles continue to plague the project and the contract is currently behind schedule. In a statement on Tuesday, the Ministry of Public Works revealed that they are currently in a standoff with the contractor, S Maraj Contracting Services. The Ministry contended that it will not be bullied, refuting the contractor’s claim that the work is stalled because the Government owes them money.
“Government will not be bullied into paying for unfinished projects. Contractors and vendors providing service to the Government of Guyana through the Ministry of Public Works, are hereby warned against any attempt to bully, and or manipulate the Government into paying for incomplete projects,” the Ministry said.
According to the Ministry, the contractor has been making claims for additional payments throughout the contract, which has been hampering progress. This is despite the contractor receiving almost $200 million upfront, roughly half of the contract sum. It was revealed that efforts were made to accommodate the contractor’s additional demands and 10 variation orders were issued.
The Ministry said that contractor Sattrohan Maraj of S Maraj Contracting Services alleged that work on the Leguan Stelling has been stalled due to outstanding money owed to him by the Government.
“The Ministry categorically refutes this claim. Truthfully, the Government would like nothing better than to finally put behind its back, this inherited mismanaged project, a slap-in-the-face and illicit act against taxpayers,” the Ministry said.
Despite the revised contract sum going from just over $400 million to a staggering $667 million, works still stalled at a critical juncture, namely the linkspan bridge. Works are now three months over schedule and according to the Ministry, it has had enough and will be seeking compensation.
“The Ministry notes that this particular contractor has manifested opportunism throughout the execution of this contract, utilising perceived deficiencies and ambiguities in the bill of quantities, as a basis for making claims for additional payments for the execution of aspects of works,” the statement added.
“These include claims for additional payment for activities that are inherent to the execution of the works, and which are typically catered for in the bill rates at the bidding phase… the Ministry wishes to note that the Transport and Harbours Department (T&HD), which is responsible for all stellings, has sought amicable resolution to the contractor’s claims and has negotiated reasonable settlements with the contractor.”
It was noted that the contractor had committed to complete the contract before June 5, 2023. This was not done and the claims of the contractor that the Ministry is reluctant to resolve its “legitimate claims” under the contract are dishonest.
“Additionally, the contractor has deliberately delayed the execution of works at a critical juncture in the project execution when the linkspan bridge installation is required to complete the major infrastructure works on the project. The Transport and Harbours Department has issued multiple directives to the contractor regarding the completion of the linkspan bridge installation.”
“The contractor’s failure to fulfil the outstanding project obligations as directed by the Ministry will result in the application of recourse and compensatory provisions for non-performance in accordance with the Contract and national procurement framework,” the Ministry of Public Works said.
In July, it had been reported that the modern linkspan bridge that should have been installed had already been manufactured and would be assembled soon. This bridge is supposed to facilitate the embarking and disembarking of passengers and vehicles between the stelling and ferry.
When completed, the stelling will also facilitate the mooring of the ferry, the offloading of commodities, and the ingress and egress of passengers and vehicles. Additionally, the project also caters to the construction of an admin building which will be utilised by the staff of the Transport and Harbours Department to essentially undertake and oversee the operation.